ICN Executes Agreement with Paramount for Dunes Claims
August 24 2011 - 2:12PM
Marketwired
ICN Resources Ltd. ("ICN" or the "Company") (TSX VENTURE: ICN), is
pleased to announce that it has entered into a Sale and Purchase
Agreement (the "Agreement") with Paramount Gold and Silver Corp.
(TSX: PZG)(NYSE: PZG)(FRANKFURT: WKN:A0HGKQ) ("Paramount") - (see
Paramount News Release of August 23, 2011). The Agreement covers
ICN's Dunes and North Dunes Projects which are strategically
located between Paramount's Sleeper Gold Project to the north and
lie adjacent to Newmont's Sandman Deposit, 11 miles south of the
Sleeper Mine. The 606 Claims subject to the Agreement (the
"Claims") cover a total of approximately 12,000 acres (4,900
hectares) and are located in northwestern Nevada, approximately 30
km northwest of Winnemucca. A link to a claim map is given in
Paramount's News Release.
A 100% interest in the Claims is being purchased from ICN in
exchange for 400,000 common shares in the capital of Paramount (the
shares are subject to a four month plus one day hold period). ICN
retains a net smelter royalty ("NSR") of 1.5% on the Claims not
subject to other royalties (248 in total) and a net smelter royalty
of 0.5% on the remaining claims which were already subject to an
underlying 2.0% royalty to a third party. Paramount has the option
to purchase 0.5% of either or both NSRs for a cash payment of
$500,000 each. Closing of this transaction is subject to regulatory
approval and a 15 day due diligence period.
Carl Hering, President and CEO of ICN commented that "This is a
mutually beneficial transaction for both parties as Paramount can
aggressively explore the covered Claims (thus the name "Dunes"),
and ICN will benefit from any success here and at the Sleeper
Project by virtue of its significant Paramount share position. ICN
will continue to explore its other recently acquired properties in
the overall Sleeper-Sandman district (see ICN News Releases of May
12 and June 28, 2011). This transaction could allow further funds
to be directed towards ICN's principle project, Goldfield Bonanza
(see ICN's last News Release of Aug 15, 2011), and is essentially a
"non-dilutive financing".
In addition to continually evaluating new opportunities, ICN is
primarily focused on their Goldfield Bonanza and Rockland Projects,
while Pacific Rim has initiated exploration under the newly formed
Joint Venture at Hog Ranch. ICN plans to start a Phase II drill
program at Goldfield Bonanza by mid-September. The current plan is
to drill an additional 20,000 feet (6,000 metres) before the end of
November, and then mobilize a core rig to follow-up in specific
areas. This Phase II RC program will focus on: 1) offset drilling
of the newly discovered and high grade Church Zone; 2) further
testing of the other identified high grade mineralized areas
including the Decline, Red Hills and Newmont targets; and 3)
continue exploration drilling in the northern portion of the
patented claims along with completing the initial testing of the
geophysical targets identified on the Property.
About ICN Resources
ICN is primarily focused on exploration for volcanic-hosted
precious metal deposits in western Nevada, emphasizing targets with
geological similarities to Sleeper, Sandman, Hollister, Midas and
Aurora. ICN plans to explore the feeder zones associated with large
low-grade gold and silver systems, as well as explore for high
grade deposits at the new Goldfield Bonanza Project located in
western Nevada. ICN continues to evaluate opportunities in
established metallogenic belts elsewhere in the United States. The
ICN management and geological team have extensive experience in
Nevada and worldwide, utilizing this experience to generate prime
opportunities for ICN shareholders.
On Behalf of the Board of Directors of ICN Resources Ltd.,
Carl Hering, President & CEO
ICN Resources Ltd.
www.icnresources.com
The forward-looking information contained in this press release
is made as of the date of this press release and, except as
required by applicable law, ICN does not undertake any obligation
to update publicly or to revise any of the included forward-looking
information, whether as a result of new information, future events
or otherwise. By its very nature, such forward-looking information
requires ICN to make assumptions that may not materialize or that
may not be accurate. This forward-looking information is subject to
known and unknown risks and uncertainties and other factors, which
may cause actual results, levels of activity and achievements to
differ materially from those expressed or implied by such
information.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contacts: ICN Resources Ltd. Tasso Baras 1-877-738-3882 or
604-738-3882 www.icnresources.com
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